Prudential Financial, Inc. · NYSE:PRU
Prudential Financial — Investor Day (December 2008)
14 slides from Prudential Financial's investor day presentation, Dec 4, 2008
Slide 1: Prudential Financial, Inc. Investor Day
Exhibit 99.2 Prudential Financial, Inc. Investor Day December 4, 2008 1 Investor Day 12.04.08
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain of the statements included in this presentation constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. It is possible that actual results may differ materially from any expectations or predictions expr
Slide 3: Non-GAAP Measure
Non–GAAP Measure This presentation includes references to “adjusted operating income.” Adjusted operating income is a non-GAAP measure of performance of our Financial Services Businesses. Adjusted operating income excludes “Realized investment gains (losses), net,” as adjusted, and related charges a
Slide 4: Reconciliation between adjusted operating income and the comparable GAAP measure
Reconciliation between adjusted operating income and the comparable GAAP measure Nine months ended (in millions, except per share data) September 30, 2008 Financial Services Businesses: Pre-tax adjusted operating income (loss) by division: Insurance Division $ 670 Investment Division 697 Internation
Slide 5: Reconciliation between adjusted operating income and the comparable GAAP measure (continued)
Reconciliation between adjusted operating income and the comparable GAAP measure (continued) Nine months ended (in millions) September 30, 2008 Revenues (1): Premiums $ 8,861 Policy charges and fee income 2,342 Net investment income 6,332 Asset management fees, commissions and other income 2,608 Tot
Slide 6: Prudential Financial, Inc. - Rich Carbone, Chief Financial Officer
Prudential Financial, Inc. Rich Carbone Chief Financial Officer
Slide 7: Considerations for 4Q 2008
Considerations for 4Q 2008 (1) • Ending S&P 500 level of 800 • 16% full year 2008 effective tax rate • 4Q08 Individual Annuities charges: – DAC and related items; GMDB/GMIB reserve increases - expected pre-tax charge of $1.2 billion – Living benefits hedging breakage through November, net of DAC amo
Slide 8: 4Q 2008 Update
4Q 2008 Update (1) • Expected 4Q08 credit losses of $300 million to $400 million(2)(3) • Expected 4Q08 impairments of equity securities of $300 million to $400 million(2) • General Account fixed maturity gross unrealized losses of $13.4 billion as of November 21, 2008 ($5.9 billion as of September 3
Slide 9: Considerations for 2009
Considerations for 2009 (1) • 2008 baseline earnings • Ending S&P 500 level of 900; average of 850 • 25% effective tax rate • US Dollar @ 106 Yen • Wachovia joint venture removed from AOI for all periods 1) Financial Services Businesses 9 Investor Day 12.04.08
Slide 10: Earnings Guidance
Earnings Guidance (1) Sept. 2008 YTD $4.65 Includes expected 4Q08 loss for Individual Annuities segment: 4Q08 Guidance (2) -$1.4 billion pre-tax (loss of $1.80 per share): ($1.10) – ($1.30) -Reflects expected charges for DAC and related items, increased GMDB and GMIB reserves, living benefits hedgin
Slide 11: Investor Day 12.04.08
11 Investor Day 12.04.08
Slide 12: Prudential Financial, Inc. - John Strangfeld, CEO and Chairman
Prudential Financial, Inc. John Strangfeld CEO and Chairman
Slide 13: Long-Term Objectives
Long-Term Objectives • Balanced mix of businesses and risks • Well positioned in protection and retirement & accumulation markets – domestic and international • Mid-teens ROE in normal markets • Double digit EPS growth • Managed for strong capital position 13 Investor Day 12.04.08
Slide 14: Investor Day 12.04.08
14 Investor Day 12.04.08